"squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew is off today. we have a huge day of news shaping up on wall street this friday. a lot of things that are happening with the markets and the stories span the globe. michelle caruso cabrera is in scotland with the results of the big vote covering the alibaba ipo eunice yoon is in beijing and kayla tausche is here inside the nyse with pricing. morgan brennan is at the apple iphone store. a lot to get through. let's kick things off this morning with michelle in scotland. good morning. >> becky, the answer is no. the scotts voted definitively against independence.

55% said no. 45% said yes. one of the morning papers here, the reunited kingdom. the no voters, jubilant last night as the results started to come in. 2 million scotts voted no versus 1.6 who had voted yes. they were absolutely ecstatic, the no vote, to see what was happening. the yes voters, as you can imagine, extremely unhappy. uk prime minister david cameron, that's not him, that's alistair darling, but the uk prime minister david cameron just a few hours ago addressed the nation. >> good morning. the people of scotland have spoken. and it is a clear result. they have kept our country of four nations together. and like millions of other people, i am delighted. as i said during the campaign, it would have broken my heart to see our united kingdom come to an end. >> the british pound rallied sharply overnight as the results

started to roll in. we've seen it pullback now, but still above 163, almost to 164. so maybe some of that priced in. but you can see the rise overnight. let me show you what's going on with the ftse, as well, which absolutely moved higher. the scottish banks, royal bank of scotland, lloyd's also sharply higher. that's the headline. the scotts said no. there's an extremely important story here that's now about to evolve in the uk because prime minister cameron also promised more powers for scotland, more powers for wales, more powers for england, as well. they're talking about the potential of having separate parliaments for each of this is regions so that way they can vote on their own issues. there's a new political battle that's going to happen here as they divulge powers to these various regions. it could be almost like a constitutional change that's going to happen here. it's a restructuring of the spending. where each region could have more power over the tax revenues and over their welfare.

there's going to be a battle because he said english laws for english people. that means now the stock scotts be able to vote on english laws, as well. that will be a different kind of battle. >> has the position of the prime minister weakened? >> if you're going to have more powers to the idea of the states, say the way we describe it in the united states, absolutely. and then there's a question about the future of david cameron himself. i mean, he certainly did not provided over the breaking up of the united kingdom, but boy, it was close. so he appears to be weakened. but yes, there will be less power at the federal level and more power at the state level, to use u.s. inventovernacular. >> kayla tausche is covering the alibaba ipo. kayla, do you have a gut feeling of the number we're talking about here? could there be three digits or

probably not? >> it could well get there, joe. i think the market is prognosticating it could open anywhere in the $80 to $90 range. certainly the price last night was very bullish. $68 a share at the high end of the company's range. it was largely expected, having not only been reported by us earlier in the day, but targeted by the company and underwriters during the road show over the last few weeks. investors said the meeting was hardly suspendful. the discussion centered on the company's long-term valuation creation. softbank and yahoo! alibaba board members and early investors gave speeches to the groups to that effect. the debate after alibaba's issue, some investors choose to sit on the sidelines, citing concerns of slowing growth in china, think about foreign direct investment weak bing and new stimulus needed for the banking sector there, not to

mention alibaba's corporate structure and heavy dependance on the investment. others are jumping at the opportunity to buy into the biggest slice of china's e-commerce market. they cite the performance of large cap ipos, as well. visa up 392% in its first year, facebook and twitter doubling. gm, though that was a different story because that was a government bailout, up 3% in its first year. these companies do have the ability to overrite ride volatility. alibaba is offering $22 billion. it's bigger than all of those, and it could yet be the biggest global ipo ever. market caps, higher than amazon, more than double that of ebay for its closest competitors in the u.s. the true market cap will be determined by where it opens. that price will be decided at post behind me. you can see this all decked out for the ipo.

we're told that the first trade could happen in the 10:00 or 11:00 hour. it's going to be a very tenuous problem throughout the morning. we'll be there every step of the way. >> joe and becky, back to you in the studio. on a programming note, alibaba chairman jack ma will join "squawk on the street" on a first on cnbc interview. >> did you see the story where jack ma is headed today? meetings with a lot of corporate leaders. we do have jeff sonnenfeld later to talk about this. right now, though, on to apple. the iphone 6 is makesing its way into the hands of consumers. morgan brennan joins us from new york's flagship avenue. a lot of people camped out there, right? >> the number is 4,500.

these lines are so long that they stretch up 10 blocks up fifth avenue from the flagship store. what we hear is they were stretching even farther, almost a mile, and that has had to cap that number at 68th street because they're not sure they're going to have enough supply for everyone. huge turnout already. this store is usually open 24 hours a day, 365 days of the year. it's closed right now. it has been as the company preps for the launch. it's reopening at 8:00 a.m. eastern. we've spoken to apple. they're keeping mum about inventory levels and about what they're speccing today as it compares to previous launches. but some of the staffers here say they're expecting this to be massive. it's bigger than anything they've seen before. of course, we've already seen those record preorders. 4 million phones in the first 24 hours. that was double the 5's launch two years ago and big enough to back up apple and some of the wireless carriers. websites of last friday.

it's very strong possibility if the scuttlebutt here is correct that these stores are going to sell out not just this weekend, but possibly today. wells fargo estimates that based on the preorders, first weekend sales could hit 10 million. if these early lines are any indication, customers are really, really excited for this phone with the bigger screens and the longer battery life. but more interestingly, not everybody here is get ago phone for themselves. some folks are being sponsored to stand on these lines for free publicity for businesses. many more are renting out their spots. and more than that, we have folks here have been in line since labor day weekend. they're looking to come in, buy their phones and flim flip them to other customers. ebay wab for example, if you go on there, dozens of listings for the iphone 6 and 6 plus. one of the most expensive on there right now is a 6 plus 128 gig unlocked, no carrier

attached. that fetched $6,300 after 48 bids and the person who is selling that doesn't have that phone in their hands. this is all on the promise of getting a phone today. becky, back to you. >> these things, you figure eventually things wear off, people don't assistant in line for the iphone 6. but you also said there were corporations that were hiring out people to stand there? what do you mean in terms of publicity. are those people that want extra publicity for apple, corporations who want extra phones brought to their workplace? what is that? >> businesses who have literally paid folks to wear their name, wear their logo on their bodies stand here. when they get interviewed, they get the free publicity. in return, those folks get dash and they get a free iphone out of it. there's all kinds of entrepreneurial stories going on here today. >> morgan, thank you. we'll check in with you a little

later. >> it finally happened at oracle. larry ellison is stepping down at ceo, being replaced by co-ceo staffers safra catz and mark hurd. he's 70. his mow away from the ceo role comes earlier than expected. it has had ten splits since then. the stock is up nearly 90,000% since its ipo shares following the news of what happened and a profit warning. it has been a little bit uneven in terms of the results for the last six quarters or so. this time results were hurt by weak hard wear sales. this was the most interesting story for me today for so many reasons. the co word, if you go back to ancient rome, coemperors,

whatever they were, they didn't work. >> it never works. >> remember reed and sandy wile. people do say, though, that these two have been basically running the company asco presidents for four years while larry focuses on technology. >> he'll be chairman. saffer cast is on the other side. they've been, woulding together for four years, but they've been someone to kind of force that. it tends to create power struggles and part equipment when you're on the job. >> hurd, they call him here a sales strategy visionary. and then apparently for catz, brilliant with operations, but shun tess public role. not as good with people. >> they have different

strengths, they have different things they like to do within it's a shot they can work together. >> but they're immediately talking about power sharing strategy carries a pack of challenges. when hurd was ousted by hp, larry ellison says it was the worst personnel decision that the idiots on the apple board fired steve jobs. >> i remember him saying that. >> they talked about his brusque personality. and then i read -- this is for you because of me. he was adopted. >> oh. >> larry ellison. this people kwas quoted as saying being rejected by your mother for whatever reason is something people never get over. and you remember steve jobs. >> steve jobs, too. >> some of these amazing successful people. >> it drives you? >> i don't really -- you know, weeks in the orphanage, as i recall, i was hupgry a lot.

i told you there were nuns there. >> you and jim belushi. >> jim belushi. this is fascinating. >> i think it is amazing to think of two entrepreneurs like that, both adopted. i think it says something. >> it's like a sharp man complex. you didn't know you were going to have a -- i should lie down while we talk about this. >> tell me more, joseph. you heard about the guy that went into a shrink and said, doc, i think i'm a dog. >> no. >> no. the shrink wouldn't get down off the couch. >> that is pretty good. i like it. >> if anover were here, i would say he was a comedian -- >> oh, okay. we're going to talk more about oracle. but also we should tell you sap is buying expense management softwaremaker concur technologies. that values that deal at more

than $7 billion. that price is a 20% premium over concourse close yesterday. this happens to be the biggest acquisition in s&p's history. the software giant says that the tie up will expand its presence in cloud computing. it's always interesting watching all of these acquisitions. oracle was another serial acquire and management to put things together over the years. >> and anyone that went up against ellison ended up working for him or getting bought by him and leaving. >> between microsystems and -- >> yeah. i wonder how many acquisitions oracle made over the years. >> in 1977, the company was founded. maybe we could look into it and find out. >> a college dropout. another one, bill gates. >> i know. home depot announcing about 56 million credit and debit cards were likely compromised in a cyber attack stores. this makes the breach larger than the one at target last

year. home depot estimates the attack will cost $52 million. this number could get much bigger. despite swings following the first news of the attacks, shares of home depot are up nearly 5% in the last month. check on the markets this morning, another, you know, big session. it's still the fed, you know, at this point. stay at zero for a considerable period of time. there's today. when you see money like this moving around in alibaba, it shows that they're still interested in trying to make some money in the stock market. >> yeah. remember, we talked earlier about the concerns that people were selling some stocks to make room to get money for alibaba. maybe this counters that notion. >> and the idea that it's a zero sum game, too. actually some people wrote in, why, if there's so many money on the sidelines we have to hear about, why alibaba? so we're -- equals 17,260

something. >> 230 points since he joined us. it was at 17,000 -- >> do we have a whole quarter left? >> yeah. we have three months, three plus at this point. i was skeptical when we talked to him earlier this week. another thousand points. >> thousand points is what it used to be. >> as he pointed out, it's only about 5%. >> how about oil? oil may not have taken into account -- oh, okay. we may not have taken into account how much cheaper gas prices really helped everyone. that could give a jump start to what has been a below average performance by -- >> this was a big cap on oil prices yesterday, must have been. we were above $94 yesterday. >> where was the ten year? i just saw it. 2.63%. wow. it was 2.60 and pulled back to

2755%. the pound is at a recent high after they said it would have been great, but it wasn't worth the risk. i like that slogan. it's not worth the risk. let's stay where we are, which kind of sucks. but to try to -- >> stay calm and carry on. >> it could be awesome. it may not work. so let's not -- that was their slogan, let's not take the risk. when i was just looking at him, he reminded me of that movie, the guy, the great king of england who had the speech problem. remember? they kind of look alike. what was that guy's name? >> what is that guy's name? >> huh? what? louder. collin furst. they kind of look alike. maybe that's how they cast him. >> well, he wasn't playing that. >> no. collin furst may be english. >> no wonder he was so good at

it the. yeah. coming up, the bulls keep booming. another record close for the dow. so where is the gloom and doom? is there anywhere we can find a yes? mark faber, editor of the gloom and doom report. he joins us next. so what we're looking for is a way to "plus" our accounting firm's mobile plan. and "minus" our expenses. perfect timing. we're offering our best-ever pricing on mobile plans for business. run the numbers on that. well, unlimited talk and text, and ten gigs of data for the five of you would be... one-seventy-five a month. good calculating kyle. good job kyle. you just made partner. our best-ever pricing on mobile share value plans for business. now with a $100 bill credit for every business line you add. watch this. sam always gives you the good news in person, bad news in email. good news -- fedex has flat rate shipping. it's called fedex one rate. and it's affordable. sounds great. [ cell phone typing ] [ typing continues ]

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publish he of the gloom, boom and doom report, mark faber. i guess no one needed to tell you that they would leave for a considerable time in their comments, did they? you probably knew that, right? >> yes, i expected that to be the case. >> because you have been dshg you know, before qe even started, you said there's going to be a qe1, auto qe2. we laughed at you because you were up at qe14, qe125, qe16. when you do qe -- >> up to 99. >> 99 bottles of qe on the wall. one person made an interesting point. peter said the other day i worried about the fed's ability to conjure up some bubbles. maybe tech, but there was a tech bubble, there was a housing

bubble and now we're not sure what to call this. he called this a government bubble in terms of just interest rates, owning all these securities, and, really, the size of government, also. is that where the problem lies, do you think? >> i think the beauty of today is that unlike in '99 until march 2000 when we had the tech bubble, at that time, the majority of old economy stocks were cheap, commodities were inexpensive. today the good news is we have a bubble in everything, everywhere. and with very few exceptions. and eventually, there will be a problem when these access markets begin to perform poorly. the question is what will be the capitalist? it could be a rise in interest rates. not engineered by the feds

because i think they will keep interest rates at zero on the fed fund rate for very long time. the bonds market, you know something most unusual. french government bonds last week were yielding 1.3%. 1.3%. spanish italian bonds about as much as u.s. ten-year treasuries. and we could have essentially a break in bond market at some point. we also could have a strong dollar, a strong dollar that has already happened in the last two months. signify signifi signifies that international liquidity is tightening. when that happened, usually it's not very good for asset markets. >> yeah. i keep trying to figure out exactly how it happened.

let me ask you, things, when they start, let's say, going down a little, usually there has to be some leverage in the system where people start getting margin calls and they're forced to liquidate which sort of feeds on itself. almost every time we've seen markets go down a lot. is that in the system right now? >> marking that is at the very high levels. as a percent of stock market capitalization, it's usuallily up to 2007 highs. and we have a lot a lot of leverage in the government sector. we have a lot of leverage in the corporate sector. and unlike the crisis 2007, 2008, when at that time when the recovery came in 2009, emerging economies had a lot of momentum. and were still buoyant in terms of consumer expenditures

increases. and a sign of what's very strong now. the emerging markets complex is slowing down and isn't going to grow nearly as much as people had expected. if emerging economies overall can grow next year, say, 4%, that would be actually an optimistic scenario. i think it could be even lower. >> so that a lot of the things that ee meal ur rated some of the things in the past, it seems like all the stars are aligned to where this could be pretty ugly where most people do not see any signs of it right now. and it's sort of to the contrary. they're very sanguine for prospects for -- we don't really see inflation, we don't see any recession on the horizon at any time.

the way you talk, there's a lot of things lined up that could create some problems. as of today, that basket is 85% more friendly than in 2009. so the money printing in europe and in the u.s. does not necessarily have to lead to more inflation in the u.s. and europe for the time being. but it has led to huge price increases here in asia, in countries like india, china, vietnam, singapore, hong kong where we have record prices for properties and as property

prices have gone up today, your prices in order to maintain the margin. consumer has gone up a lot in price. so there is inflation in the system and in the u.s. rates the other day were in chicago. >> what is to make us think that it wiped up back here? we think oil prices have dropped so rapidly, that made gasoline prices fall rapidly here, as well. >> yes. what has happened this year is true gasoline prices from the highs have come down somewhat. oil prices are down from the highs.

also corn, wheat and soybeans are down. the aural commodities nearing a low. they won't stay at this level tet. there will be a recovery. but the fact is simply easier to take oil today. you see it in front of you, $92. 1999, it goes at $12. food prices are way up. everything is more expensive. it calculates its own way and other people have different way where they show that the cost of living for the average family is much higher. i want to just explain to you. one thing is very clear. consumption in the u.s. by historical standards hasn't recovered much.

it's taken a salary and compensation. and the cost of living had gone up more than the salary increase, they're getting squeezed. that's why retailing is not doing particularly well. now, i admit i had in the u.s. and elsewhere an early economy. in aspen and palm beach and in mayfair in london, kensington, bellsy and so forth. and then we have the economy of the average person, very different things. but the rich will get creamed one day in -- especially in europe. . >> we've got to run, mac. if you have five seconds, the last thing, in the past, these things like ukraine or syria or

the iraq war, they seemed to be short lived. that's usually not what causes something to happen in the financial itself. i'm not looking at a geopolitical event. usually it's something we're not speccing. it's a slow untraveling that we see. i wish i knew what the canary in the coal mine was going to be that would give us a heads up that starts. in five seconds, do you have a quick idea where it might be? >> i think that the big surprise will be that the global economy slows down and goes into recession. and that will shock markets because with all the stimulus we had, at the fiscal stimulus and the monetary stimulus since the global economy can't recover under these conditions, i don't know what it will take to make it recover. i know what it takes. it takes smaller government as a

percent of the economy. the government is not the solution. it's precisely the problem of slow growth in the western world and in japan. >> thank you. thank you very much.marc faber. we'll check back with you soon. whenever we check back with you, i hope nothing has happened yet, but fairway -- >> hold the press. >> we'll see you again soon. thanks. up next, back to baba. how important is the e-commerce giant to china and how much of an influence does alibaba have on the mainland? plus, an executive from one of the world's biggest pharma companies is in big trouble in china. also, scary moments for some jet blue passengers. we'll have that when "squawk box" returns in just a moment. ♪

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good morning and welcome back to "squawk box." i'm joe kernen along with becky quick. there was an emergency on a jet blue flight. a plane was leaving southern california when an engine apparently exploded on the airbus a-320 a few minutes after takeoff. the cabin was suddenly full of smoke. you can imagine being on this. passengers grabbed for oxygen masks. once the plane completed its emergency landing, passengers jumped down the evacuation slides and four people were treated for what were at least minor injuries. jet blue says it's still

investigating what went wrong. >> have you ever been on a plane where the oxygen masks drop out? >> i have never. >> i haven't, either. >> the closest i've been was just about maybe 500 feet off the runway and pulling out because there was another -- too close or -- >> another plane? >> i don't even think it has to be right on. anything in the air is disconcerting, obviously. >> we're glad that everyone is okay. also some unrelated news from jet blue. the airline is getting a new ceo. that change has been widely expected. david barger will be replaced by the current president, robin hague. the new boss could move the low cost carrier to add fees for things like checked baggage which to this point hasn't happened at jet blue. clorox's ceo is stepping down after eight years on the job. he will be succeeded by benna dora.

also, alibaba preparing for its first day of trading at the nyse after pricing its ipo at the top of its expected range. eunice yoon has a look at what this company means to china and to the country's culture. eunice. >> becky, it means a lot for the country. jack ma made his mark in china by changing the way chinese people shop. he got people comfortable with the idea of being things zon line. walk down any street in china and it's easy to find self-described addicts of alibaba. many are such fans of the e-commerce giant's online shopping site, taobao, that they wish they could buy into alibaba's new york ipo. >> i use baba every week. they seem to be one of my friends. i think i would invest if i do have a lot of money. >> taobao is a national object

session here. it means search for treasure, a site where consumers can buy everything from handbags to houses. the payment system is one of china's most trusted. though many wonder if alibaba can feel safe among american investors who question its corporate structure, accounting and potential influence from the chinese government. >> i think as a publicly listed company in the west that offers mostly here in china, i think there's going to be some significant cultural challenges as they prepare to do business in a place that they don't have a lot of experience in. >> and today, there's just an upswell of national pride. people are really excited for jack ma as well as for alibaba. and there's a little bit of stock market envy where people are talking about how they wish that china noo had a stock exchange that was able to handle an ipo of this size. guys. >> eunice, it's going to be something to watch. by the way, another story would

you have been following, the glaxo bribery case, there are new developments on that this morning? >> yeah, absolutely. there is a very big development. it's actually a -- a way in which you can see how it's -- it's basically an example of when you fall out of the good graces of the chinese government. basically, gsk, glaxosmithkline was slapped with the largest corporate fine in china. the company is going to have to pay $490 million. this is after a chinese court found that the chinese unit of the company did, indeed, organize a massive bribery network, funnels handles of millions of dollars to doctors as well as hospital staff. the executives, there are five of them. they were on trial. all of them got suspended sentences. this included the british national mark riley who is expected to be deported. this is unsettling a lot of people here, especially in the business foreign community. they think a lot of these

investigations that have been going on have not been transparent. the company itself has said that they're very committed to china. they are distancing themselves from the chinese unit, saying that the activity at the unit were in breach of the company's own compliance regulations. and they also issued an apology to the chinese government as well as to the chinese people. guys. >> eunice, thank you so much. again, eunice yoon. right now, let's bring in ron josie, covering yahoo! stocks for jp securities. yoo-hoo has a 20% stake in al by louisiana. some consider owning yahoo! shares as a back door way to get into baba. >> good morning, becky. >> we saw the pricing come out at $68. what does that mean? >> i think there's been incredible demand. i woond be surprised if it opens directly into the 80s and maybe even in the 90s here

immediately. so i think there's tremendous demand. you have a -- this is what we call a seminole event in the internet industry. there's a hand full of companies that have gone public here at this valuation, facebook here for sure. this alibaba, we've been waiting for this for years. investors are students of yahoo! for a number of years here. yahoo! has been an investor in alibaba since 2000. now the event we've been waiting for is here and it's exciting. >> the way you bring up facebook as something you look back to, i'm should the sure alibaba is not hoping to have those stumbles out of the gate. >> it's funny, when they originally initiated or published their first tiling here, there was concern or question about how they could transition over to mobile. mobile is growing very quickly, but the take rates on the commerce that goes through mobile was actually much lower. then all of a sudden their second filing or last filing comes up with updated numbers in

q2. the bottom line is, it seems to me they're tackling the issue very, very well. when you think about what the issues could be, i'm not sure what they are. you have a strong company, growing 40 plus% coming out in the mid teens on valuation on ebitda. and maybe you have some concerns on regulatory or just the fact that it is a chinese based company. but frankly, from a fundamental point of view, it's hard to find knit air in this story. >> for months and months and months, people have looked at yahoo! shares as a potential back door, a way to get into the alibaba shares without actually buying alibaba? >> do you ascribe to that theory? >> it's an interesting question in that it has played out very well over the past couple of years. yahoo! is now, post the ipo, around 16%. you're buying yahoo! and they still call it maybe 20 billion to 25 billion after tax worth of yahoo! on alibaba. but now that the ipo is here, if

you want to buy alibaba, you can buy alibaba. there might be something more on the core fundamentals. frankly, that is something that we're looking for the turn around here. so i'm not too sure if it is as much of a back door as it used to be simply because you can buy alibaba directly. >> what does that mean for shares of yahoo!? >> you know, i don't know if you'll see as much of a growth here as shares of yoo-hoo have done very well over the past several years. but -- and frankly, yahoo! will continue to sell more of their investments in alibaba. again, after tax, maybe that's 20, $25 billion, a good am of money here. but frankly, you know, we think that yahoo! will likely -- investors will likely focus more on operations. that's something that they're in a turn around. we do have -- we're focusing on their display business, which isn't growing very quickly or at all. and so we're looking for the turn around there. and i think from a yoo-hoo perspective, yes, alibaba is still a catalyst, however, i

think it's less of one just because the ipo is here. >> ron, we had peter teal on this weekend. he was praising marissa mayer saying that he thinks she has done a great job, probably has added to the value of yahoo! when you strip out allibaba shares. what is the value of yahoo! ex alibaba? >> that is something we get debated on a lot. there's no doubt what marissa mayer hahn done has been a pretty great job thus far. she's turned the company around, the products the better. now the next question is how do you attract advertisers? froonkly, we haven't seen that yet. there's a lot offing this things going on for yahoo!. they are em brating more enigmatic more and more. you hope that the new products can ininturn drive more.

the numbers, they're just not coming through. it will take three plus years for a company of this size to turn around. there's certainly potential. we're sort of waiting to see it happen more than just assuming it will happen because it's not easy. >> ron, thanks for joining us this morning. >> thanks, becky. a programming note for you, alibaba executive chairman jack ma will be joining "squawk on the street" live at 9:30 a.m. eastern time. this is a first on cnbc interview. i keep catching myself saying alibaba, alibaba. >> 56-0 in the third quarter? >> what game? >> bucs and falcons. >> ugly. >> wow. >> ended at 56-14. got close. when we return, derek jeter hit a home run during his last

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welcome back. let's check out the equity futures. people think this is going to be a big day for alibaba. what else? we had a huge day yesterday. >> i think you were right in your assessment earlier saying it the fed still. >> for the last two weeks. but it was -- and there's still

the one question people still ask is, you know, this is -- this is out of control. this is -- it can't stay this hot. >> that's good. if you were a bull in the market, you complacent, that's nerve-racking. >> yeah. only ten games left for derek jeter as number 2 gets ready to retire. the yankees captain paying tributes to his fans in a new gatorade ad. the full 90-second add will run during games this weekend. it's already gone viral on social media. and coming up, another iconic figure is hanging it up. oracle's larry ellison stepping down as ceo. shoes so big that they needed two people to fill them. is that bad news, though, for investors? "squawk box" will be back in just a moment.

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if you are in need of a vacation but can't afford to get away, marriott has a solution. the company is testing a virtual trip. you step into a phone booth-like setup dubbed the teleporter. and you put on the oculus headset and head foens. >> are you joking? >> i don't know. you are then teleported to a

destination. you see the sights and you even feel things like the sand. >> how -- this is straight out of an arnold schwarzenegger movie "total recall." why would marriott want to do that? >> i don't know. do they charge? is this going to be a revenue stream? >> how long do you stay? do you walk into these booths like a tanning booth that you go to? >> i was ready to read more, but all i see there is tease coming up, bucky. so that's all we're going to get. >> i'm confused and i'm dubious of this entire thing. i think we just got punked. >> people at home are waiting for more. so they must have more. that was a tease. >> this is a tease for a continuing story nap sounds like we just got punked. >> where do you get the sand? >> maybe put it in your hands. >> then move the cat litter box over near you.

>> grainy sand. i don't know. i think i'll do a little research in e the break. when we come back this morning, we have live reports from around the world own the three events that will dominate the business day ahead. alibaba, scotland, and the apple iphone. joe and i got into a heated debate about telling the nfl to police their players. do they have a right or are they grand standing? we'll ask a crisis management expert. stick around. "squawk box" will be right back. . right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a newly redesigned cabin of unrivaled style and comfort. ♪ the all-new c-class. at the very touch point of performance and innovation. ♪

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this is awkward. go to comcastbusiness.com/ checkyourspeed. if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business. you are looking at a live picture of the new york stock exchange.

that's where chinese e-commerce giant alibaba is poised to make it start on wall street. jack ma is expected to arrive at the exchange at any moment. the ipo pricing last night at $68 a share. and alibaba is just one of the main events today. our kayla tausche is there with the latest on the alibaba pricing. we're also live in scotland this morning. and it's early out in palo alto, california, but josh lipton is up and so are a lot of other folk who is are lining up to get their hands on the new iphone 6 that goes on sale for the first time today. we're going to start out today with alibaba. >> now to alibaba, the chinese ipo pricing on top of its expected range last night. kayla tausche joins us with more. >> it's quite a mob here. there are more than 130 press organizations waiting here to see jack ma and his executive team. of course, the founder of the

alibaba group which has created millions of dollars in wealth for tons of people who have started their small businesses on this site. and as you mentioned, ma himself has become china's richest man just by the founding of alibaba. today he's expected to be worth north of $22 billion himself. at roughly $68 per share, it has a market cap of $168 billion. that's the biggest global ipo ever excluding an overallotment of shares the company can still sell in the coming weeks. last night as the company solidified its ipo price, they spoke to the company's aim for shareholders going forward. made multiple their initial investment that they made in alibaba several years ago. now, the allocation of shares wasn't completed until very late last night. my sources tell me that half of the shares went to some 25

firms. the majority of which the lions share of which were mutual funds which is expected to create a demand where the stock will pop. because all those fund managers will be scrambling to buy those shares once they become available on the public market. we're not sure when the stock is going to open. the executive team is here now. they'll go through the procedures at the stock exchange, meet with their market maker. but barclays wants to get that first trade right. it wants to create a seamless debut for the company so that could be as late as midday. it could even be early afternoon depending on how many orders to buy, orders to sell come in. that, of course, is the tenuous dynamic they have to figure out this morning. that's the latest from the new york stock exchange. now back to you in the studio. >> get a selfie if you can,

kayla. >> they're a little far away, but i'll try my best. >> what do you mean you're far away? your feet are in concrete? get over there. thanks. and programming note, jack ma will join "squawk on the street." in the flesh he'll be there? >> he will be. i think he was standing right behind -- i think we just missed him through the crowd. >> we could have had that? >> as he arrives. there are a lot of people lined up to take pictures. right now let's get to michelle. she is in scotland where citizens voted to reject independence choosing to stay in the united kingdom. it looks like the markets are breathing a sigh of relief. >> definitely. we've seen london stocks move higher. 55% voted no. 45% yes. that was more definitive than the last poll showed. the cover of the star scotland today says re-united we stand.

as you can imagine there was jubilation as the results rolled in overnight. they were thrilled more than 2 million scottish voters said no to independence. that's the leader of the no campaign as he got on stage to make -- to call it an acceptance speech, not exactly. but you know what i mean. however, bagpipes played a lament in the major square in glasgow where many of the yes voters had gathered. 1.6 voters voted yes in this campaign. but that wasn't enough. that's the major headline. the nearly as important headline is the following. the scots were promised if they voted no, the parliament would get more power to the scots. david cameron, the prime minister of the uk today said that would happen, but it's not going to happen just for scotland. hear what he said to the nation just a few hours ago. >> so just as scotland will vote

separately in the scottish parliament on their issues of tax, spending, and welfare. so can be too, england as well as wales and northern ireland should be able to vote on these issues. and all this must take place in tandem with and at the same pace as the settlement for scotland. >> that was really important. in other words, what he's saying is that the scots are now not going to be able to vote on issues related to wales, northern ireland, and england in ways that they couldn't before. why should they be able to do that if they're going to be in charge of their own tax revenue? that is going to set up, one, a new battle in the coming months of how that's going to work out. and it's also a really major change about the way the uk is going to be governed with federal powers devolving now to the states if we want to use u.s. vernacular. let's look at what the markets did overnight. the british pound rallied sharply as we started to see

results come in. it's to a buck 65. back to you guys. >> all right. we'll talk with you a little later. if you want to take a look folks, back at the nyse, jack ma is standing by. this is who everyone was trying to take pictures of. our cameras made it through the crowds. jack ma is standing there. this is as they await the first day of trading for the ipo of alibaba shares. again, he'll be joining us on "squawk on the street" this morning. apple folks will get their hands on the new iphone 6 this morning. josh lipton is in palo al toe where the die hard fans are waiting in line. has anyone had a glimpse of the iphone 6 yet, josh? >> well, i'll tell you, it is 4:00 a.m. local here. still very dark out, but the apple fans, they are already on line.

about 200 people on line here in tents, in sleeping bags. they're here with their dogs. the first person was actually here on tuesday and they are waiting to see these. the iphone 6 and the iphone 6 plus. what tim cook is calling here the biggest advancement in the history of iphone. actually got a chance to take these iphones out for a test drive last night. they are bigger. they're faster, better camera, and improved battery life. and fans here in palo alto can't wait to get their hands on them. >> i've actually been driving here every night like a week before launch day before these guys were here in line just so i could see the situation. i've been going to san francisco, stanford shopping center and here. >> the bigger screen surface, the landscape mode. overall the whole product of the iphone 6 plus looks amazing. >> so apple saying demand for these phones -- this is the 6

plus right here. preorders actually topped 4 million in just 24 hours. obviously important that apple gets this right. the iphone still accounts for about 50% of apple's revenue. in the past, tim cook has showed up at this store right behind me on launch day. we'll see whether the ceo makes another guest appearance here this morning. guys, back to you. >> all right, josh. thank you. >> we're going to get another shot of jack ma. because he has aged. it's been a minute and a half. that's what he looks like now. that's what he looks like now, in case you didn't -- >> that's going toob great picture no matter. they knew the shares were going right up or if there's a stumble along the way, that will be the picture that comes back again. >> similar to the last shot. >> 90 seconds ago? yeah. >> thanks, josh. we got a look at the iphone 6 there. we've got that going for us. >> that's coming up at 8:00 a.m. home depot says 56 million

debit and credit cards were probably compromised in the attack earlier this year. that's bigger than the breach at target from last year. all malware has been removed from its systems, it says. they've been changing the numbers -- i think what was it $65 million they were talking about originally but that's a number that could increase. in other retail stories, walmart says it will be hiring 60,000 temporary workers for the holiday season. that's a 10% increase from last year. most retailers are hiring more than they did a year ago. maybe that's a good sign. a share of compressor and dresser maker is jumping. siemens is planning to bid more than $1.6 billion for dresser-rand. gee. i wonder if this company is more

valuable to this foreign entity because of the tax rate over there. swiss pumping equipment company said earlier this week it was talking with dresser-rand about a potential deal as it continues. >> picking them off one by one. >> stop the inversions because it's pc. but we won't address the problem so this keeps happening. you leave the country one way or the other, these great american institutions. and s.a.p. buying expense in software maker concur technology. that values the deal at more than $7 billion. and the price is at 20% premium -- >> is that a similar story? is that another inversion? >> not an inversion. >> but that is another case where because of the tax laws, it makes it much more -- i don't know what the -- >> whenever we say that, there's other reasons companies do things, obviously.

but it does beg the question. that's not the same concur we do our expenses with, is it? >> i doubt it. it is? >> it is. we just had the ceo on. remember? >> i wasn't here that day. >> you weren't? we just had the ceo on. it was in the 90s. it was 129 there. meanwhile, the marriott thing you looked it up and there are little -- >> i did. let me find this. i don't know if i can get this up on the screen again. >> we should have had the pictures of the booths. >> look. it sounds completely bizarre, but if you take a look. these are -- we talked about the virtual reality. i just shut off my computer. never mind. >> they kind of look like johnny on the spot. >> on the streets in new york city or l.a. or something. you walk into it and my guess is this is a marketing ploy. it's a marketing ploy to make you think hey i wish i was on a beach right now.

>> "saturday night live" has already done this. all the way back when dan aykroyd and jane curtain and dudley moore was guest hosting. and don pardo did it where they were in an elevator and dgarret morris was a traveler and every floor was a different place. i don't understand this. a married couple walks on and the wife kisses another woman and that was supposedly sweden. you can't do that anymore on -- but that was the old days of "saturday night live" where they got away with murder. then they went to spain and dudley moore was in a matador outfit. it was funny though. every floor he traveled to. >> so again, "snl" not just a predictor of the future. for things to come. >> for 30 years. unbelievable. all right. when we come back, an icon and rebel of technology is retiring. larry ellison done as the ceo of

the company he founded in 1997. and will that mean more sailing for one of the world's richest men? we'll talk about that next. procter & gamble is dropping out of a major campaign with the nfl. does the league have the right playbook to deal with this crisis? that is coming up later this hour. the performance review.

that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. go to comcastbusiness.com/ checkyourspeed. if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business.

>> welcome back. changing of the guard in the tech world. larry ellison is stepping down as ceo of oracle. joining us now jeff sonnenfeld from the yale school of management. also a cnbc contributor who just walked his dog and got skunked. >> you don't have to bring that up. this is not smell-o-vision. >> that's good. how'd you manage to do that? >> i did the scrub down. my wife came up with a concoction. >> that was just a couple hours ago. >> you live in the wild. this is what happens out there. >> way to start a morning. >> jon fortt's here with nothing interesting that happened. >> i'm having lunch with jack ma today, nobody's going to come near me. >> anything happen to you this morning? the alarm went off and you got dressed and came in. >> usually you can smell a skunk from a mile away. you did good. >> hopefully the dog had the

brunt of it. he was actually much more photojenic. i don't think we should bring him to the set. >> are you sure it wasn't a cat with a white stripe painted down. >> that's a smelly cat. >> all right. are you guys going to debate? he said stuff about you before i couldn't believe. >> but my wife said you're so handsome, how could i argue with you. but you have it right in this case. i think about every analyst who weighed in, i don't know what they've been drinking, smoking, thinking. this is not predicted by anybody. this is a disruption. the market didn't expect it. technology experts didn't expect it. people in the market didn't expect it. you're putting in two people. everybody so far keeps referring to this as co-ceo. they're not even comfortable using that term. it's like this board has written two different press releases.

>> what do you think actually happened? >> this is a board that -- this is a solution with a board that was always very much -- they're a fantastic board in terms of individual competencies but carried with larry ellison. we've seen boards that should do better. and in this case the board has looked at the fact that larry is frustrated with all the people including the great jim cramer who was pointing out the performance. before any of us knew what the cloud was, larry was into this. industry standard events and conferences and everything. he had his eyes bulging screaming about how in the early '90s that the cloud was the way to go. not only stealing some of their best talent away, they've had a mass exodus of their top talent. the number one guy in asia, two dozen people leaving in the last

two weeks. it's over cloud issues. and they're leaving angry. you look at ibm, it's up -- are you laughing at me because i'm wound up on this? >> no. because we've talked about how to pronounce her game again and again. >> it is remetti. but they're up by 25% on the cloud. and $7 billion run rate. ibm is the biggest player in the cloud. now this happened with larry being, you know, quite visionary about this. but they didn't deliver it. >> oracle's cloud growth was well over 20% when you look at those numbers. put up oracle's five-year chart versus cisco's or ibm's and you don't see a big dropoff. they're near their highs like an microsoft or intel. has oracle executed perfectly in the cloud? absolutely not. but you look at their hardware

strategy which is a next generation strategy. the margins they've been able to achieve. integrated sun microsystems. they've done well on a number of fronts. then you look at what's actually changing here. safra catz said not only will there be significant changes as a result of this, there won't be any changes. i think you've got a title shift happening here. presidents become ceos. ceo becomes executive chairman. you've got a stepback that he was doing. he missed his big keynote last year because he was watching his boat race. >> at least they won. >> yeah. >> but do you think this is not an unyielding relationship? >> it was before. >> they hardly ever work. very rare do they work. even at goldman they didn't always work. they were elevating them to chairman. do you know a ceo -- mark hurd is ceo and he doesn't have legal report to him, finance report to

him. >> what kind of president was he before? >> you can have co-presidents. if you're saying that this is a misleading move, in fact, larry's still the ceo and this is cosmetic. i'm not sure what this buys you. >> i'm not sure. but i think the next move is the important move. this more acknowledges what had happened to this point. but larry a 70 years old. what's the next move he makes -- >> do you think two heads are better than one? is that the message? >> i think you've got hurd and catz. >> two is better than one. try running the boston marathon as a siamese twin. you're pulling in different directions. >> but the question is what happens next. >> that is an issue. 37 years as ceo. now tell me somebody else who had 37 years. fred smith, 46 years. rupert murdoch, 54 years. he's been ceo longer than

redstone both has. this is a long time, 37 years to be at the helm. this is two generations. two generations the same guy there. it's time for a change. if he's still the guy in charge of technology, i don't know. look at the board. george in there, his bios understate him. he, not al gore, created the internet. he's one of the early guys slashing together and he was a top guy at ibm then. this is the champion of hardware and software and internet. there are people with strong technology backgrounds. also strong administrative finance types on this board. it's easy to draw a bifurcated leadership on this board. that would line up against these. if mark is ready to be ceo, why not make his ceo. >> he made $78 million last year. is he planned for retirement?

does have all his affairs in order? >> i think you're going to carry him out of oracle horizontally. >> you'll see jack ma today too. >> i'm looking forward to that. >> hopefully he's got his retirement in order. we've got to get out. thanks, guys. "squawk box" will be right back. . and... exhale. aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep.

find out how fast aflac can pay you, at aflac.com. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

still to come this morning, the currency trade after the big vote in scotland. plus scandals versus sponsors in the nfl. is there a playbook to handle this situation or is everyone avoiding getting sacked? "squawk box." stick around. we'll be right back.

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♪ welcome back to "squawk box," everybody. among the stories that are front and center this morning on a morning with futures with indicated higher. scottish voters rejecting independence from the united kingdom. the vote threatened to break up the world's sixth biggest economy. but at this point it looks like the markets are breathing a sigh of relief. u.s. wireless carriers will start taking orders for the samsung note 4 phone today. this happens at the same time iphone 6 launches. and money going to the

american society. it will help fund senior faculty at the cornell institute. that's a sciences campus that opened in new york city two years ago. the pound hit a two week high against the dollar is the word of a no vote in scotland was announced and the exit polls. a wide enough margin. joins us to talk currencies, boris slotslov and dan dicker. what would happen -- have happened, boris? what would they have used for a currency? let's say it had gone the other way. did you prepare for that scenario very seriously? >> no. i don't want to think about what would have happened. not only would it have been horrible, but it would have opened a pandora's box and

created all other opportunities. in many ways i think this was a welcomed event not just the brits but the europeans in general. because it put the lid of the breakup and fracture ideas within the eurozone. >> is there any reason that now that it's all said and done, should people continue to buy the pound versus the dollar? any reason to do that? >> when i was here last week, i said the market kind of thinks it's going to be a no vote. it had a bit of a burst overnight to 165 as a result of it. but i think you've seen a bit now. a lot of the echblt was priced to the pound. you think the good news is this is pretty good. i think this is where the story in the uk forms our own story. the central breaks are in no

rush. that's why this whole frenzy was way overblown. i don't think it's ready to hike rates any time soon. they're under no pressure. they don't need to unless inflation roars its ugly head. >> then why the markets and i'm going to talk to dan dicker in a second who loves to go against markets and says the records are wrong. >> as long as my money holds out. >> the dollar's been strong and indicating rates are going up. >> don't get me wrong, i think it's still a long-term dollar rally. i think it's going to pause here as they try to evaluate economic data going forward. the bond traders are not 100% convinced rates are going up. the 5-year starts to tighten up. but if the 10-year going to 2.75, then we have a rocket fuel rally. but until that point, the jury's

still out. >> i see all these charts going by of the dollar. boris, i don't know if you're a chartist, but doesn't this stuff look over extended? that's why oil has been dropping. it's the one trade that's been making oil drop. >> you've got ten reasons why -- i want to let dan talk. you've got ten reasons the last time why you told us oil should be at $150. >> i think it's a mirage. >> how long will you stick with that? >> at least until it breaks $90. that's not that far away. >> then what would you say? >> then i'd look for another level of buy in. >> i thought you'd say another job. >> my money is strong here. i can last a long time. >> that's the expression. you can -- >> let's talk fundamentals. today is alibaba day. >> i'd be worried on oil if i were you too. you really don't want to update us on whether -- when do you expect to be right on oil?

>> look. i think that -- this is a long-term trade. i think that right now it's connected directly into the dollar. it's directly connected to fed speak and what happens -- >> but rates haven't started going up yet. why would oil all of a sudden reverse and go back up? >> you've been watching it. this is about an expectation of what's going to happen in the next year. it has nothing fundamentally to do with oil. oil as still got a major problem. they have a major environmental problem in their cities. but they're going to have to tre place that coal with something. russian natural gas, oil from a global network. and they're going to need another 20 million barrels a day. >> we also had heidi heitkamp on this week. she said it's gang busters. >> it's already in the market, you said. >> we're already at 8.8 million barrels a day. what we're going to get in total

is not going to surpass 10. that's another million and a half barrels a day going to be added to supply. again, we're talking about in the chinese emerging market alone, a 10 million barrel a day increase in demand that's going to occur in the next 15 years. that you don't get from u.s. shale. it's got to come from somewhere else. >> all right. we're going to keep having you back. you're going to have to keep doing this. >> i just want to see if it -- >> it worked for ten years, joe. it's going to be wrong for a couple of months. >> i like it lower. that's what i'm saying. and the world likes it lower. >> you've been talking all week about normalization about oil prices. i wanted to ask you what's a normal oil price? >> $10 a barrel. >> those days will never come back. >> i want $1.30 a gallon. i do. >> i don't blame you. i do too. >> i pine for -- we're of similar ages. >> i remember trading oil $16 a

barrel. >> remember when we walked to school up hill both ways in the snow? things are so stupid. >> buy of tesla and oil will go down to $1.30. this is -- obviously in your term not applicable. isn't there a way to alternative energy and this is something just starting and maybe the oil market as we know is going to completely change in the next five or ten years? >> boris, when you get on that wind powered airplane, you let me know. >> 30% of all german capacity now is done with alternative fuels. >> and it's costing them a major problem in their economy. they've had to walk away from it so fast. it's not economically a viable -- at least not right now. >> the rates are coming down radically. that's the whole point. solar is coming down -- >> then shale is wrong and bp is wrong and exxon is wrong and so on. >> i hope on that 737 that's solar powered, i hope you don't run into some clouds, boris.

into a cloudy day. because i don't know what happens to your solar powered airplane. anyway. where are we going? we're going to wrap. dan, thank you. boris is still worried about that extra molecule of carbon dioxide out of the million we have now. have you ever seen more twitter activity -- you see kayla did this selfie? we're going to do it after the break, but my thing is lighting up because of her expression. she looks so happy on this and it's her face and jack ma is behind her. we're going to look at it when we come back. still to come, alibaba's jack ma is at the new york stock exchange. he's a rock star and everyone wants a piece of him. we're going to show you after the break with what joe was just talking about. and our jon fortt will be back with a little game of show and tell. he's brought the new iphone 6 right here to cnbc. we'll see if bigger is better. (trader vo) i search.

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checking the futures right now. i think we're up 60 points at

this point. after a pretty good week. >> yeah. it has been. and the fed i think made the entire turn when the market was discounting earlier in the week, end of last week thinking the fed was going to remove some statements and it signalled it would be raising rates sooner than later. since the fed spoke, all bets are off. >> economy's getting a little better. few things happening. every time i look over, i get ten new notifications. no one ever really cares what i tweet. but check out this thing of kayla. i asked her to take a selfie. i'm told this is not really a selfie. it's more of a photo bomb. that's jack ma in the background. >> i think jack ma is looking at her though. >> but someone is pretty happy to be standing there. that's really cute isn't it? with an expression like that. she's excited about being there. but people love this shot. and if you follow @squawk or

what is it? >> @squawkcnbc. >> i think you're @joesquawk. i can't even remember what it is half the time. we should leave that up. that's cute. and it's so -- it's like a big face and then you see the guys behind her. take a look at stocks to watch this morning. dresser-rand shares soaring this morning. german magazine reporting that siemens is planning to bid for the maker of compressors and turbines. swiss pumping equipment company solser said it was talking with them about a deal. i wonder why no american companies are bidding. oh, maybe it's not as attractive because of the -- we'll just deal with inversions. those nasty corporations are trying to escape.

concur technologies being bought by s.a.p. for $129 a share. so 20% premium. whenever you file your expense report now. you're going to have to do it in deutsch market. there are people. have you ever had an -- you use -- right? >> he comes with us on the road. >> he does. do you have an expense account? have you used this for anything that wasn't business related? you swear? under oath? >> he thought you were skipping jury duty this week. sworn in anyway. >> i know. up next -- like they'd put him on jury duty. he'd let everybody off. look at him with what's in his past. the nfl taking a pounding not only from the front pages of the tabloid and talk radio this week, but also have a number of its biggest sponsors. will any of these big money

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welcome back, everybody. procter & gamble pulling out of a breast cancer initiative with the nfl because of the recent scandals. a number of sponsors also weighing in with some strongly worded statements expressing their concerns. so far, though, no top tier advertiser has walked away from

football. joining us to walk us through what happens here is karen kaplan and also derek desenhall. thank you both for being here. eric, i think the name of your book probably says it all. things happen a lot more quickly. and corporations, organizations have to be looking at things differently than they did just five years ago. correct? >> well, they do. and i think the important thing to understand about the nfl is there's a very big difference between this current media vortex surrounding the nfl and this being a consumer crisis. one of the things the nfl has going for them that most organizations under attack don't is they have passionate constituents. they have people who want to go to the games and they have sponsors when all is said and done want to continue working with them.

even though i think some of them are going to be treading water for the time being. in terms of what the nfl does about this, there's really three things. there are hard tactics which is firing, suspensions if you look at what the nfl did on the injury issue. they've changed the fundamental rules of the game. then you had number two, soft tactics such as bringing in violence experts even though we don't know what the dividends of that will be. but it's an important exercise. and finally, the variable of time. i think this will pass out of the news like a lot of other things pass out of the news. >> you know, just -- eric, i wish i were you. because that's -- i've gotten in all these heated debates and i would have said exactly -- that's how these guys operate. these pr people know how to phrase what they're saying and that's exactly what i would say. you put those three things to gt. because earlier today you know what i did? it's on the front page and everything, but i went to the sports page to see who's playing this weekend. that's what i did. and i mean, i know it's

important and you've got two things child abuse and domestic abuse that no one is going to ever, you know, condone in any way. so the sponsors have to say something to cover their own. but i don't want to get cynical about it, but they have to weigh in on this thing. >> they do. and they will. >> but to actually pull -- when anheuser-busch pulls out and lets coors have its spot, that's when -- >> well, procter & gamble pulling out of the breast cancer initiative. >> that's what i meant by treading water. >> i agree completely. >> and treading water happens all the time. look. back in the bill clinton scandal you had the same american public that wanted every single detail of his sex life. meanwhile the guy left office with the highest approval rating ever. so there's a difference between talking in talk show world about a controversy and people abandoning the controversial figure. >> karen, to joe's point, he's in the majority.

there was an nbc news poll last night that showed 90% of americans while they are outraged by this story says this will not affect the amount of football they watch. so what does this mean? >> so i'll say the nfl like all brands are judged by two different lenses. people judge them as users and people judge them as citizens. and as users, they love the nfl. they love the experience of watching the games, playing the games, playing fantasy football, buying and wearing the merchandise. but as citizens this is what's erupting right now. so people need to understand what are the values and the beliefs of the league. what is the value of the league they'll hold themselves accountable to? they seem to come out with a different position that is based

on the daily public opinion. and so the -- it's sort of the citizen lens that people are offended by rather than the user lens. >> does that lead to change ultimately or are we talking about a situation that blows over with the passage of time? >> this is what's interesting. social media has really changed the way all brands and companies and leaders need to respond to things like this. because on the one hand you've got a whole different set of influences you've got to worry about. of course they have to worry about their sponsors and their advertisers and their regulators. but they also have to worry about ordinary citizens who can activate their individual social networks either for you or against you. and that is what influences, i think, a lot of advertiser and sponsor decisions as well. and then the other issue is that everything is visible and observable. so when -- by the time you see the video, we see the video. you know, every image, every

text, every video. nothing is hidden. and you just can't put that back in the bottle. >> you know, with what we see on twitter and with social media, it's not exactly a -- you know, it gets ugly at times. and because it exists, it doesn't mean it's right. and there are times where talk about no due process. but with twitter as you said, things can happen instantaneously. i mean, there's not even the slightest presumption that someone would be -- i'm not saying anyone's innocent here, but you don't even hear the other side of anything. you're already convicted. i mean, twitter would execute people almost immediately if they could. so i don't know whether that makes it right just because it's real. and that's sort of what gets me here. when the head of the national organization of women said the nfl has to do something about domestic violence in our society. and that to me just -- see, i would say we have courts, we

have -- there are things that need to be done by society that you cannot hang on the nfl because ray rice did this in an elevator. >> but in the game of whack a mole between a company and social media, the company loses. >> right. doesn't make it right though. >> and contrary to what people in my field would have you believe that there's a way to overwhelm social media with contrary messages, there is no way. that's one of the things i talk about in my book. that simply because there is an overwhelming presence of social media, it doesn't mean there's a clever way to beat it. that's why you have to look at a longer term than trying this futile effort to beat things within the twitter sphere. >> is it a net positive for society? i don't like the parts of the world that are dictated by twitter. >> social media is a negative in crisis management because they can't beat it. anybody who tells you -- for society that's something that's going to be debated over the next thousand years.

and that's not something we're going to resolve here. but if you are the target of attack, it is a huge negative and there is no way to beat it in the short-term. >> when you talk about some of the hard tactics, eric, what do you think happens? we go to a zero tolerance policy where anybody who gets accused of anything gets taken out of the lineup? >> no. i mean, there's a thing such as going too far. you're going to start hanging everybody before we know whether they did something or not. as karen correctly said, now that everybody is carrying these little devices and you can film everything, there's nowhere to hide. years ago you could jump ahead of controversy by trying to prevent it. the whole cliche of get ahead of the story is virtually dead now. but i think that given is that you're dealing with video cameras everywhere, the only thing you can do is default to hard tactics, punish bad actors, but you have to not over-respond either because i think you're going to see a violent reaction

when innocent people are hung out to dry. you're starting to see this with the issue of spanking a child which has been taken out of context in many situations. there's a difference. so you're going see that happen over the next few weeks as well. >> very quickly, just one word on this. the nbc poll last night less than a third of americans thinks goodell should go because of this. do you think he survives? >> i do. >> karen? >> and what i think they need to do is put forward consistent policies that deal with criminal behavior, that deal with all kinds of behavior so that people really have a good understanding of what they stand for as a league. >> okay. thank you both. we appreciate your time today. >> thank you. another blockbuster hour of "squawk box" is still on tap this morning. the president of the nyse will join us first on cnbc. is the stock exchange ready for today's alibaba ipo?

plus stocks from china. since they started trading here in the states. and later should american companies be excited that companies like alibaba are coming to our shores? we'll ask the u.s. head of chamber of commerce. that's when "squawk box" rolls on.

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alibaba's big day. you are looking at a live picture of the u.s. stock exchange where the chinese e-commerce giant will start trading. the iphone 6 officially on sale. you're looking again at a live picture of apple's flagship store in new york city. that's where folks have been on line for days awaiting this moment. and we're live in scotland this morning where it will stay a part of the uk. it is 8:00 a.m. here on the east coast. and the final hour of "squawk box" begins right now. welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with becky quick. a special night for falcons

return man david hester paying homage to his idol deion sanders. more on that and the nfl in just a bit. but first we have some big events happening today. we are less than 90 minutes away from the largest ipo ever on wall street. the new york stock exchange is set for alibaba to begin trading. just about an hour ago jack ma and alibaba's executives showed up at the exchange. lots of pomp and circumstance down there. we're going to get the rundown on what's expected on the day ahead from the president of the nyse. just minutes from now everything from pricing to the first trade to the safeguards in place to make this event go off without a hitch. but first, putting other chinese stocks in the spotlight. our dominic choo looking at how those imports from china have done since coming to america. >> you can't make a

generalization what stocks do when they go public. but especially chinese internet stocks have really, really a lot of scrutiny put on them for a number of reasons. we went all the way back to 2005. that was when baido became public. look at the other ipos that have come to market in the united states and how they did on their first day. look at this one here. renren which is like the facebook of china, it popped ep 20%. but since then it's down 70%. not all these stocks go up. but look at some of these other ones. this is leju. this happened this year. it was an ipo at the new york stock exchange. it's up 20% on its first day of trading and still up 38% since then. meanwhile go this one here. interesting.

vip. since march of 2012 it's up 3,000%. that's what maybe some investors are looking for. but what they really want to see is what happened with baidu because it's like the google of china. this went public in august 5th of 2005. up 350% on its first day of trading. then up 8,000% over the last nine years. a lot of people want those first day pops with but the staying power is there for chinese internet stocks. back over to you. >> up 8,000%? that's jaw dropping. what were were talking about oracle today? up 90,000% but that was since 1977. people have been waiting to get their hands on the iphone 6. don't run out to get one until after "squawk box."

morgan, at this point nobody else can get on line. they're going to run out. >> it's looking like that could be the case certainly. 4,700 people last time we checked had been on line this morning ahead of this launch. and they're all on line to get this. this is the new iphone 6 and the sister model iphone 6 plus. the lines have been stretching up half a mile up ten blocks. two really interesting things going on here. because there's so many people, businesses have been coming in and using this as a marketing opportunity. everybody from mcdonald's to grub hub to double tree hotels have been here promoting their products. also, a lot of the people on this line are chinese. that's really interesting given the fact that mainland china is not getting these iphone models until most likely. 2015. so these are some of the trends we're looking at right now. as you can see people going inside and apple employees cheering them on. so certainly a very busy event here this morning. back to you. >> all right. morgan, thank you.

you can hear the crowds cheering as they're heading in. joining us right now on set with the new iphone 6 and to give us his take on the ipo is our jon fortt. you have these things. hand them over. let's see. >> i do. and i've brought my iphone 5s for comparison. >> okay. >> i want to get a selfie with the new iphone 6. can i get a selfie with that? >> we can arrange that, yes. and here is the 6 next to it. now, i'm a skeptical reviewer. i used to review products for newspapers. i'm still not convinced. >> can i see it? >> absolutely. i'm not convinced i need a larger iphone. here's what some of my larger handed friends expect to be getting the 6 plus. now, people are -- you either want this thing because you're like here's what aye been waiting for or you go this is a monstrosity. it is so much larger.

one handed operation of this thing is virtually impossible. apple has a one handed mode for this phone. if you tap twice here, see that's what you have to do to reach the whole thing. it makes half of the screen out of the range of your thumb. but there is a market for these larger screen phones above five inches are the highest growth segment of the smartphone market. >> i wonder what steve jobs would think of this looking down. >> he realized what the customers wanted. whether it was he was against the mini ipad until apple had to do it. we saw he was getting convinced on that. and now larger phones. what apple says is we weren't against larger phones. we were against doing it the wrong way. but i think they were against it. >> you left your twitter open and i'm tweeting from your

account. >> something good i hope. >> i just tweeted a hi. but joe, tweet whatever you want. >> i do like this. >> i do too. it's thin. i thought it would be thicker. >> it's thin and it's -- >> it's thinner than my 5s. >> i think i like that one better. i like the mid-size one. >> it's not like a tv. >> i do get frustrated because you do so much on your screens nowadays. >> this i can't even -- i can't -- >> here's what i find. if you're into video and you're a two-handed phone user where i'm going to take this out and be engaged with the content, you don't mind a bigger screen. or if you're a giant, right? but if you're like me and i'm a person who's taking my phone out multiple times a day whether it's tweeting, e-mailing, messaging. you need something you can kind of quick draw. it's kind of like you want a rocket launcher or do you want a pistol. i'm more of a pistol guy because i use it a lot. people are going to have to make

those decisions, make those tradeoffs when they go in the store and decide what model they're getting. there's people right off the bat that know. >> i lost this right as i was trying to tweet something. now i can't find -- you've got these little things where inside of them they have six things. i don't have any of those. where's twitter? >> it's on first screen. if you go to the home screen, down at the bottom. >> i tweeted your boss from you. >> great. >> i can't find it. i was going to say @joesquawk is much better looking in person. i can't find it. i had my chance to sweet on your phone. >> i have short arms. it's too far. >> here, i'll get it back for you if i can. this is the hot stuff that's happening today. what about the alibaba ipo? >> here's where i am on the alibaba ipo. it's the biggest ipo ever. it's a huge brand event for

china and for chinese capitalism. and a lot of questions about the structure of governance going forward. for me this is the litmus test. jack ma for me is the first huge chinese tech ceo who gets to be a visionary plp the chinese government allow someone to be like a zuckerberg, like a gates. and that will sort of -- >> on an international stage too. >> on an international stage. and the will, i think, color how silicon valley and american business in general interacts with china based on how this is allowed to go. >> now, jack ma has played in these circles for quite a while. he shows up with some of these people. but even today he's having a lunch that he's going to be meeting with some of the big leaders there. there's a big dinner tonight and then next week he's going to be at the clinton global initiative. so this is maybe not completely a new way of doing business, but this is on certainly a grander scale.

>> lthere's a lot at stake. china wants investment. the ceo goes over and the end up -- somehow the company ends up giving tens or hundreds of millions of dollars to chinese start-ups committing too building factories or investing rnd in china. that's what the government wants. but at the same time there's this protectionist attitude towards made in china technologies and companies. whether it's lenovo. they want to give those companies the best foot forward. so which way will that go as we see alibaba get more of the world stage, get more global investors. will china allow it to go its own way or will they pull back? >> thanks for bringing in the phones today. and wait until you see what we tweeted. >> that's great. can i have that back now? >> maybe. maybe. okay. thank you, jon. and the votes are in. scotland will remain part of the

uk. the british pound hitting its highest levels in years against the -- i just said right back to you. so are you, dom. you are much more handsome in person. not exactly striking as i put for myself. michelle, i tweeted on jon's new oversized iphone 6. i'm going to say this edinburgh you've got to roll your "r." you should be good at that. will you say it for us? >> edinburgh. boro. think of it that way. scots voted no. and it was a lot wider than what the original polls or the last polls they want is -- supporting independence. those in charnl of the no campaign were incredibly jup le -- jubilant. however over in the square in glasco, they were quite sad

about the results. now looks like scotland will get more power and control. that's another big story that's going to happen here. you showed the british pound. it moved sharply higher. the first results came out, and bam. it went to buck 65. it's pulled off the highs but it's certainly way beyond the buck 60 it first went to when we saw the polls. rbs, take a look at that. we're going to show you the listing. it is higher on the results. the spanish stock market is doing well. investors there relieved about scotland because they're hoping that might temper catalonia which is another area looking for separatism. it rallied in the morning. the ten-year yield. and as a result we've seen it come down 2.2 now as these polls

had show it will go towards the noes. >> i don't know enough about how the vote came up, but is this a one-time vote and is chance it comes back down the road? >> not in their life times. i mean, both sides, on both sides of the campaign they said this is the one chance in a lifetime. they spent a long time negotiating it. it's a two-year process. unlikely we're going to see this again. especially because they're talking about a major change in the way the uk is going to be governed. maybe that resolves some of the pressure that had been on the central government in terms of these issues that brought about the desire for independence. >> okay. michelle, thank you. up next, the good times just keep rolling for investors. since the march 2009 bottom, the dow is now up over 160%. the s&p almost 200%. how much longer can the party l

last? we'll ask a top strategy. and then the president of the new york stock exchange with us just minutes from now. "squawk box" will be right back. t new car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com e financial noise financial noise financial noise

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>> yeah. because we never talk -- >> we never mess up. welcome back to "squawk box." what were you saying? >> coming on at 8:00, it feels like the middle of the day. >> it's almost like noon. you got to sleep in. but we didn't. >> i know. >> the s.e.c. is reportedly investigating a goldman sachs internship for the brother of a former official at libya's sovereign wealth fund. that's interesting. regulators are looking at perks allegedly offered to the fund. it comes after allegations by libya that goldman exploited a position of trust by urging the fund to invest more than a billion dollars in trades that ended up worthless. the dow and the s&p kicking off this final trading day of the week at record highs. check this out. the s&p is now up 41% since the beginning of 2013. it's got people questioning how much longer stocks can climb without a meaningful correction. with us is jonathan golub.

it's great to see you. >> great to see you, becky. >> everyone was nervous before me got to the fed meeting thinking we'd hear a different tone from janet yellen this week. we did not. that seems to have everybody off to the races again. how long does that last? >> first of all, i think that market run is going to keep going as long as the economy continues its recovery. >> so it's not the fed. you think it's the economy. >> let's be honest. the fed is dancing to the economy. it's not that the economy is letting the fed tell us what to do. and i think that we're not your 5.5 in a 7-year soil. i think we're in a 11-year cycle. we'll say how much further can it go in a year or two from now. >> what makes you feel so optimistic about the economy? what are the signs you've seen that make you think this is for real? >> i think there's a short-term issue and long-term issue. longer term, we've had really by far the slowest recovery we've

had since the end of world war ii. inflation is low, we haven't had the kind of job creation. we're not as far along as we should be at this stage of the cycle. that means there's a lot more room to run. near term, all the economic indicators. companies are increasing their guidance on earnings for the next couple years. they normally keep -- they start to ratchet down. now they're increasing it. expectations for the economy are rising. ism is going up. the whole sweep of data is telling us we're reaccelerating. >> we had mark on this morning and he pointed out when you look at some of these overseas economies like in india, they're facing much higher inflation. they're very worried about what's been happening, what happens when the fed does start to raise rates. does that catch up with our economy at any point? or are we able to outrun the emerging markets, china, europe, any woes along the way? >> i get concerned when mark

farber comes on. it's what is he going to say that is going to be water on this fire. but would it be great to see the world growing faster than us and helping pull us forward? yes. we're also the single most self-sufficient economy in the world. just because we're so large and we have such a vast array of resources and things of that nature. we're the single economy that if it's sloppier or weaker we could do okay. would i like to see japan and europe growing more than zero? yes. and are there questions on china growth and things of that nature? no question about it. >> go ahead. >> i was just listening to you, it doesn't make sense to me you say it's not the fed, it's the economy that has the market going. but the reason the fed is staying for a considerable time is because the economy is not where it should be. so it's not the economy. >> right. so my -- >> you're saying it is the

economy because the economy is still tepid? >> my thesis has been that, you know, we're in a weaker economy for a variety of reasons. but really, you know, it's the aftermath of what happened a number of years ago. and therefore the weaker economy is forcing the fed to basically -- >> so it's different than a good economy. it's an economy that might be just right. like the soup. like goldilocks. >> it's disappointing. so having an economy that's growing at 2.25% is disappointing. what does the fed do? they play along to keep things easy because things aren't great. >> then that's different than what i thought you said. >> i think the reason that we get a really long recovery cycle is because it's not great. you say new normal or put it how you wish.

>> jonathan, thanks for coming in. >> thanks. >> did you have an important last moment to make? >> no. i was going to see if i could knock him on anything. >> did mark farber say anything else? >> he's got a lot of different points. i guess people wonder just with alibaba out today with the things we get to excited about, does that concern you. they're going to roll it over us anyway. still to come, salt and pepper, chips and dip, now pizza and pot. peyton manning knows this is a winning combo and he's cashing in. that's next on "squawk." plus it's a big day for the nyse. what has the exchange done to make sure that things go off without a hitch? we're going to ask big board executive tom farley. the world has gotten you far,f but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform,

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welcome back to "squawk box." business is going well on and off the field for peyton manning. the denver broncos quarterback invested in 51 papa john's pizza franchises just before the state made recreational marijuana legal. in an interview the nfl star says the pizza business is pretty good out here believe it or not. due to some recent law changes. so when you come to a different

place, you've kind of got to learn everything that comes with it. shares of papa john's rising more than 17% in the last year. peyton does the commercials for it along with papa john. >> the guy, the owner. >> yeah. >> the c eeo. >> he keeps trying to get better. >> i think he's okay with it. >> you do? i think he needs to keep working. >> i can tell you at the break. >> tell me now. >> then i'm not telling you. i take it back. up next, first on cnbc, the president of the new york stock exchange. thomas farley will join us live. he'll walk us through what investors can expect when alibaba starts trading today. then the man of the hour, jack ma will be joining "squawk on the street." right now as we head to a break,

look at the futures. dow futures up 50 and s&p up by just over 5.5. bloop

. welcome back to "squawk

box," everyone. clothing maker vf corporation was upgraded to buy from hold. that firm expressing confidence about meeting at a recent analyst conference. we mentioned earlier that conquer technology is being acquired by germany's s.a.p. the same not true for s.a.p. whose stock is actually falling on news of this deal. down by about 4%. and red hat earning 41 cents a share for the second quarter. 3 cents better than expected. however, the revenue forecast came in below the street estimates. stock down about 2%. wall street and the entire world anticipating with great excitement the first trade of one of the biggest ipos ever. i don't think it's anxiously waiting. alibaba. bob pisani joins us now on the floor with -- that can't be the head of the new york stock

exchange. that young, handsome strapper right there is the head of the new york stock exchange? how tall is he? >> if you stand around long enough, the new generation takes over. tom farley. big day for the new york stock exchange. big day for your boss. the prior ceo also helped negotiate this deal. big day for him as well. how'd you sleep? how you feel? >> i feel good. thanks for the introduction, joe. we feel confident but not over-confident. it's a big day. it's a big ipo, but that's what we do here is bring companies to market. we have the four largest ipos this year happen here on the new york stock exchange. this is our business. and we're ready. we don't take success for granted. but i feel good and i slept pretty well. >> we're anticipating a very large number of orders coming from asia. i guess that's the question. are you confident that you've done everything you can to test

the systems. make sure everything works as smoothly as possible. >> confident but not over-confident. we're constantly testing here. operating systems from listings, tradings or security industries. we're constantly testing and preparing. because of the sheer size and magnitude of alba, we did tests. we did three big tests including two industry tests on a weekend. we include our broker dealer customers. all of those did well. i think we're ready to go. >> there's been a conference call this morning with the major market participants. this happened with twitter. this is a process you've gone through before. >> you mentioned the call this morning. the new york stock exchange has a hard earned reputation for doing these things well without mistakes. but we don't take it for granted. we think if something could go wrong how do we need to react. the primary thing to do there is

communicate well with your broker dealer customers. we had a call open this morning. i expect to be on that call so we can react quickly. we have open lines with each of our large order flow providers. we have great people on the floor of the new york stock exchange who know how to react. while i expect it to go smoothly, we're prepared no matter the circumstances. >> this is a hard-won battle between you and nasdaq for this listing. the most coveted in the world right now. can you give us insight into how you won the deal? >> i don't want to speak for alibaba in particular, but when companies choose to list here, number one we have the greatest list of companies in the world. number two, you get incredible media exposure by listing here in this iconic building. and we have humans and technology at that point of sale. and humans can say wait a minute, i want to slow this process down if there's an imbalance of buyers or sellers or vice versa and make sure we

get it right. >> before i let you go, talk to us about the international business here. we have a china-based company listing a sole listing in the united states right now. obviously there was some board issues, but tell me about what that means for the nyse. what it means for the global stock market. >> sure. one thing that makes me particularly proud about our business is he's not just the premiere listing venue here in the states. we're the premiere listing venue globally. or even next week we have a billion-dollar-plus ipo. the world's leading global companies are choosing our venue. >> there is a tidal wave of ipos coming. next week $7 billion in ipos. how do you feel about the ipo market right now? >> good. like i said, alibaba is a large ipo, but we do this often. we have a $3 billion citizens

pasta ipo so i feel good. >> before we let you go, the big question, what time is this going to open? >> you know, i'll answer your question directly respectfully. i want to start by saying i don't really care. part of what i like about our model is that we have humans that can work with the technology and they can open the market when there's a balance. and when that entrepreneur can get a full and fair price for their stock and the stock can trade as smoothly as possible. it's going to take awhile this morning because it's large. >> is it fair to say and everybody down here is talking about this, it could be two hours. >> could be two hours, could be three hours. and that's the model working. >> prediction on price, open, anything like that? >> no. >> none at all. okay. and the important thing is here's where it's all going to happen. there's some of the team, some of the guys back here. we're going to be here. we're going to be behind the scenes. we're not to be back there. we're going to be there with pat

and lane the designated market makers. we're there all through the morning with the head of ipos who works for this guy whost going to walk through the whole ipo process, explain to us how they're building the book and how the process works. nowhere else but cnbc are you going to be able to see this kind of inside view on how the system works. good luck. thanks for being here. always appreciate you coming on. >> thanks so you as well. appreciate it. >> going to be a big day for the nyse and capitalism, i think. back to you. >> yes. from a capitalistic country. the kind we used to be, bob. years ago. if you're going to ask him a question he's not going to answer like when it's going to open, ask him what price it's going to open at. we don't care when. it's ask him that. if he's not going to answer something. >> i think he already has said. you want to answer that? >> no. >> we'll get him backstage and see if we can get it out of him. >> that is going to be neat though. >> and that's great you're going to be there watching everything

get matched up. and i have the utmost confidence in the nyse under this gentleman's leadership. >> thank you very much. >> nothing happens unless human beings say something's going to happen. doesn't open until the guys back here as well as the book runners get together and say we are ready to open at this price and with this number of shares. somebody's got to sign off. humans are here. >> yeah. apparently he spends a lot of time there at the new york stock exchange working on that and not practicing golf very much. but he's good at the stock exchange. >> that's the god's honest truth. >> inside joke, folks. >> we appreciate it. up next a gatorade commercial paying tribute to derek jeter. you won't believe what tickets are going for for the final home stand of his career. details after the break. and on monday we are unveiling the results of an

exclusive new global survey. it's called the corporate perception indicator. 25,000 people from around the globe weigh in on issues like taxes, job creation, and how corporations are perceived. it's an eye opening survey and you can only see the results right here on "squawk box." monday at 7:00 a.m. eastern time. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. i know what my money is doing. i rebalanced my portfolio on my phone. you know what else i can do on my phone? place trades, get free real time quotes and teleport myself to aruba. i wish.

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♪ the final curtain my friend only ten games left for

derek jeter as number 2 gets ready to retire. paying tribute to his fans in a new gatorade fan. jeter walking around the stadium while frank sinatra's "my way" is playing. the full ad will be running this weekend. it's already gone viral. tickets for his final game are now going for thousands of dollars on the secondary market. that's according to ticiq. as for jeter's final, final, final game which will be played in boston, the average price on the secondary market is currently $445. safe to say that that is likely to go up. >> i haven't checked our standings. is there no way they can do a wild card or anything. how do we know it's his final, final, final? >> yeah, but can they make it in the post season? >> 99% -- so you're a fair weather -- i thought you were a yankees fan.

so you've given up. our producer has given up. he's saying, stating it's the final, final, final game and they can't possibly make the playoffs. >> how about final, final, final game if the regular season. >> that should have been in there. how pathetic. coming up, the al -- >> it's the voices in your head. >> the alibaba ipo just another example of how the chinese are moving into america to do business. but will it hurt u.s. competitiveness? we'll ask the head of the chamber of commerce tom donahue. that's next on "squawk box." one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor.

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welcome back to "squawk box," everybody. we've been watching the futures this morning. we have seen more green arrows. this is after a week where we've seen positive moves for the market. the dow futures up another 65 points above fair value. nasdaq up by about 16 points. ben affleck says he counts cards and is not apologizing for it. he says that's just being really, really good at blackjack. last spring he was hit with a lifetime ban at the hard rock casino after officials accused him of counting cards.

but he said what went down wasn't as dramatic as the tabloids led us to believe. the casino asked him to play another game but he says blackjack is his passion. in other words, he doesn't play other games of chance. if i could count cards, i would. >> i think there's a way of how many face cards above and below average you are. i don't know how he does it. >> i'd do it. the idea that you can't have an advantage, well -- >> no, no, no. yeah, because the house already has an advantage. whole feeling of gambling gives me the creeps though. as we've been telling you, alibaba set to start trading in about an hour from now. it's a big deal that the e-commerce giant decided to list here in america. should we expect more chinese companies to come to america? is that a good thing for our economy and our competitiveness? we'll talk about that with mr. donahue chamber of commerce

head. two forces coming together here today trying to buy prize u.s. assets because they're worth more to them because of our tax rates. i wouldn't imagine you say it's bad for alibaba to list on the new york stock exchange. >> i think it's great for the exchange itself and for the reaffirmation that america remains the center of capital investment and the creation of capital for the globe. at the same time, while we welcome them, look forward to working with them, we want to remind the chinese that we expect and want the same treatment of welcome, of fair treatment from the government and the regulators that alibaba can expect to get from the united states. and i believe that we should really focus on the fact that 95% of the people that american companies want to sell something to are somewhere else around the

world. we're in a global economy. and a great supporting factor for us is we're in that economy as the center of finance. >> how -- one thing we've talked about, you look at the history of jack ma. you look at the 45% profit margins. everybody likes a winner. do you get the feeling -- have regulators here -- we're not looking the other way and sort of, you know, not paying as much attention as we should to some of the discretions of jack ma or this company in the past are we just to get it here? >> let's look at that from what we are doing. we're working very aggressively with the accounting regulators around the world to make sure that not only companies from china but companies from all over the world try and live by the same standards that we do in counting the money, counting the success, and enumerating the

failur failures. that's the only way investors get a fair shake. and we will continue to insist on that on markets all around the world if people are going to have and companies are going to have access to the u.s. capital markets. i feel better about it than i did a year and a half ago. i think when a number of chinese companies had to withdraw from some of the markets, there was a recognition that they had to get their books in order as we and others in the world see them. and i think you're going to see more of that not only from china but from other countries where well-funded, well-led companies are developing themselves. >> all right, tom. so today we got a couple of more -- foreign companies do things for different reasons. mergers aren't all about taxes, obviously. but we do have -- there's

interest from a swiss company and another one french for dresser at this point. concur -- it's s.a.p. so when we talk about inversions in our tax rate, all we hear inn our tax rates, all we hear from shermer or jack lew is about the companies in the united states, they try to tell us all they are doing is moving their headquarters and they are escaping taxes. they don't ever talk about these other companies that are able to buy our companies because on a business, just looking at apples and oranges, they are able to -- it's more profitable for them based on their tax rates. we are losing here, as well. probably losing more here. they don't talk about that. do you? >> let me say that it is an election season. i believe the senator and the secretary are trying to deal with some difficulties as americans begin to understand that we really have a tax system that is unfair to american companies and has been for a

long time. we pay the highest tax rate and we are restricted because we pay it twice. no other country, major country, goes without a territorial tax system. we have to pay it overseas and we have to pay it here. now, who's behind all of this? if you really look into it, you'll find the street, those very same people you were talking about this morning at the new york stock exchange, the street is going around saying, look, if you were to do an inversion, you'll pay half the taxes of those types while you're still paying taxes in the united states. then the government comes back and says, we are going to stop that. there is a very, very important thing that the government's got to think about. well, two things. one. you can't change tax law by regulation. you need a law. but the second thing is, if we were to change it, that would put all the muscle then overseas because the very same markets

and the very same investors would go to switzerland and say to a drug company, here's the capital. you go buy pfizer or you go buy another and bring it there. now then, america is going to lose. >> that's what's already happening. that's what i'm talking about today. because foreign companies -- you can do a valuation model on what a company here is worth to a domestic company. it's not the same. the company outflow is going to continue. i know there's elections every two years, tom. but are politicians that dense, the ones that talk about creating jobs and caring about the middle class, they're that dense they don't think maybe we should do something instead of just fixing the symptoms? >> i think you would agree that we can sit here and talk about this because we are very familiar with the issue. i think we would agree there are a lot of people in the business that understand about inversion.

but the buddy politic, be the people all over the country, we've got to talk to them and explain what it's about. it's about double taxation and it's very, very much about an idea that jack lew and others have that we would go back and collect retro active taxes. for get that. >> tom, tom -- >> the bottom line is senators and congressmen sometimes react more to the knowledge of the people than they do the knowledge of the experts. >> president obama was head of the harvard law review. he's such a smart individual, you can't tell me he doesn't understand that. does he? are you telling me he doesn't understand this? >> not at all. i might say he fully understands it, but may not appreciate it. >> i'm willing to listen to any explanation because it's confounding to me. i don't understand it. what i hear is that big tax changes and tax reform takes years, three years, five years.

there's all these sacred cows. the big companies don't want to do it because they get all the loopholes. so before all the tax dollars are gone, we need to do this now. we need a small fix to prohibit them from doing it instead of a large one. that's what they are saying. >> we would appreciate ourselves with a fix that looked at the issue of double taxation and put a fix in on that. you are not going to lose money because they are not going to bring the money back to the united states to pay taxes on it until we change the law. >> are you okay with a revenue neutral one that changes the tax rates but remains revenue neutral? >> i've been around a long time. i've had more people walk in my office with revenue neutral tax deals that don't go very well for the business community. let's see the numbers. >> all right. keep the faith, tom. i don't know. you've got a tough job. you keep hammering away.

all this stuff you've been trying to do the past five, six years, you are not getting anywhere? >> oh, yeah. we are doing great around the world. we are doing all right in some of the regulatory things. hang on. news at 11:00. >> all right. thank you. good to see you. >> thank you very much. >> you're welcome. tom donahue, chamber of commerce ceo. it is a big day for business and it is just getting started. alibaba set to start on the stock exchange. all the news on the floor. apple iphone 6 going on sale a short time ago. this is a live shot of the flagship store in new york. one thing we haven't forgotten today. we saved the best for last. here is a hint for you. arrgh. when fixed income experts work with equity experts

who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration.

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financial noise financial noise financial noise hello, maty. we saved the best for last. it's international talk like a pirate day. pull out your eye patches and giving pirate talk a try. we are not talking about the somali type pirate.

we are talking about the nice pirate. what has eight eyes, eight arms and eight legs? >> 16 pirate. >> no, four rookie pirates. why k did the pirate have red eyes? >> why? >> he smoked too much seaweed. >> do you that so well. >> arggh. those are new jokes. we usually do the same. >> i got the rookie one. what's a pirate with two eyes and two legs. a rookie. >> i doubled it. >> you did. >> we would be remiss if we didn't say it one more time. alibaba. >> that's it. we are in the final countdown to the ipo of the year. alibaba set to go public on the nyse minutes from now. jack ma was greeted at the exchange earlier this morning with rock star status.

kayla snapping a selfie with him. >> i can't compete. >> big day today. "squawk on the street" starts right now. 15 years after its founding and months of speculation, alibaba goes public at the new york stock exchange today. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david farber. the launch of the apple's iphone 6, oracle's larry ellison relinquishing the ceo title. can you believe the